Amazon launched its latest Kindle eReader recently
with a lower price point. The catch, however, was that users would be bombarded
with ads while the device was sitting idle. The surprising thing for many when
the new Kindle launched was that it was only $25 less than the version that
doesn't require ads. The big question on many minds was if consumers would buy
thead-supported
versionsto save a few bucks.

It appears that the answer is yes; thead-supported
Kindleat $114 has taken over the top spot for best-selling
electronics on Amazon.com. Granted, most take that with a grain of salt since Amazon
provides the numbers. The fact that the ad-supported version took the top spot
is impressive and might herald a new rush of cheaper eReaders from other
providers that are ad-supported.

There is a chance that an ad-supported version
might be more lucrative for Amazon and others than the standard version. That
would depend on the price Amazon is able to charge for ads.

While the ad-supported Kindle is doing well in
the market, there is rising speculation that Amazon may
be readying a tablet. Amazon certainly has the customer base to sell a
tablet and could leverage some of the eReader systems already in place for the
tablet.